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What is 'Fair Market Value - FMV' In its simplest sense, fair market value (FMV) is the price that property would sell for on the open market.
Fair market value for publicly traded stock Determining the fair market value is relatively straightforward for stock that is traded on a public exchange. In such cases, the fair market value is calculated by taking the average of the highest and lowest selling prices of the day. If fair market value needs to be established for a non-trading day, then the averages from the day before and after may be used instead.